CUS NTF NO. 34/1997 DATE 07/04/1997

Exempts goods imported against DEPB scheme
As amended by Notification No.44/97-Cus dated 12-5-97, 66/97-Cus dated 3-9-97, 87/97-Cus dated 27-11-97, 65/98-Cus dated 25-8-98, 104/98-Cus dated 16-12-98 No.52/99-Cus., dated 3-5-99; No.81/99-Cus., dated 26-6-99, No.52/99-Cus., dated 3-5-99; No.81/99-Cus., dated 26-6-99,No.121-99-Cus., dated 4-11-99; No. 1/2000-Cus., dated 5-1-2000 and No. 5/2000-Cus., dated 21-1-2000]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government being satisfied that it is necessary in the public interest so to do, hereby exempts the goods of description specified in column (2) of the Table below, when imported into India,-

(1) from so much of duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)as is in excess of the amount calculated at the rate specified in the corresponding entry in column (3) of the said Table;

(2) from so much of duty of customs leviable thereon under the First Schedule to the said Customs Tariff Act as is in excess of the amount calculated at the rate specified in the corresponding entry in column (4) of the said Table;

subject to the following conditions, namely:-

(Portion at opening paragraph has been subsituted vide CUS NTF NO. 95/2004 DATE 15/09/2004)

[OLD-
goods imported into India from -

1) the whole of the duty of Customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) ; and

2) the whole of the additional duty leviable under section 3 of the said Customs Tariff Act where specifically claimed by the importer subject to the following conditions, namely: - ]

i) That the importer has been issued a Duty Entitlement Pass Book (DEPB) by the Licencing Authority in pursuance of paragraph 7.25 read with paragraph 7.29 of the Export and Import Policy (hereinafter referred to as said Duty Entitlement Pass Book(DEPB).

ii) The importer has been permitted credit entries in the said Duty Entitlement pass Book(DEPB) at the rates notified by the Government of India in the Ministry of Commerce for the products exported or has been allowed a provisional credit in the said Duty Entitlement pass Book(DEPB) by the Licencing authority to be set-off by the credits earned on exports to be subsequently effected;

iii) The said Duty Entitlement Pass Book(DEPB) is produced before the proper officer of Customs for debit of the duties leviable on the goods but for exemption contained herein;

Provided that exemption from duty shall not admissible if there is insufficient credit in the said duty Entitlement Pass Book(DEPB) for debiting the duty leviable on the goods but for the exemption.

iv) The said Duty Entitlement Pass Book(DEPB) shall be valid for twelve months from the date of issue or such extended period as may be granted by the Licensing Authority, for import and export only, at the port of registration which shall be one of the sea ports at Mumbai, Calcutta, Cochin, Kandla, Mangalore, Marmagoa, Chennai, Nhava Sheva, Paradeep, Tutcorin, Visakhapatnma, Kakinada, Magdalla, Sikka,Pipavav, Dahej, Nagapattinam, Okha, Dharamtar, Jamnagar and Muldwarka and Mundhra or any or the airports at Ahmedabad, Bangalore, Mumbai, Calcutta, Coimbatore, Delhi,Jaipur, Varanasi, Srinagar, Trivandrum, Hyderabad, Chennai, Bhubaneshwar, Nagpur and Cochin or any of the Inland Container Depots at Bangalore, Coimbatore, Delhi, Gauhati, Kanpur, Pimpri (pune), Pitampur (Indore), Moradabad, Ludhiana, Hyderabad, Nagpur, Agra, Faridabad, Jaipur, Guntur, Varanasi, Jodhpur, Salem, Tirupur, Singanalur, Waluj, Malanpur, Surat, Nasik, Rudrapur (Nainital), Kota, Udaipur, Daulatabad (Wanjarwadi and Maliwada), Dighi (Pune), Vadodara, Ahmedabad, Bhiwadi, Madurai, Jalandhar, Meerut, Bhilwara, Pondichery, Garhi Harsaru, Bhatinda, Dappar (Dera Bassi), Chheharata (Amritsar), Karur, Miraj, Rewari, Bhusawal, Jamshedpur, Surajpur and Dadri or through the Land customs Stations at Ranaghat, Singhabad, Raxaul, Jogbani, Nautanva(Sonauli), Petrapole and Mahadipur.

(Condition (iv) has been amended vide CUS NTF NO. 63/2004 DATE 14/05/2004)

(Condition (iv) has been amended vide Cus Ntf No.84/2003 Date 27/05/2003)

(Condition (iv) has been amended vide Cus Ntf No.125/2002 Date 12/11/2002)

(Condition (iv) has been amended vide Cus Ntf. No.122/2001 Date 3/12/2001.)

(Above amendment has been made vide Ntf. No.30/2001, dated 12th March, 2001.

(Sr. No. iv has been amended vide Customs Notification No.120/2000, dt. 15-9-2000)

(Amended as per Customs Notification No.5/2000 dated 21st January, 2000)

(Amended as per Customs Notification No.1/2000 dated 5th January, 2000)

Provided that where that expiry of the Duty Entitlement Pass Book(DEPB) falls before the last day of the month, the Duty Entitlement Pass Book shall be deemed to be valid till the last day of the said month.

(Inserted vide Customs Notification No. 81/99 dated 25-6-99)

Provided further that the Commissioner of Customs may by special order and subject to such conditions as may be specified by him, permit imports and exports from any other sea port, airport, inland container depot or through a land customs station;

(Substituted vide Customs Notification No. 81/99 dated 25-6-99)

(Sr. No. (iv) has been substituted vide Customs NTF No. 52/99 Dt. 3-5-99)

(Third proviso has been omitted vide CUS NTF NO. 97/2003 DATE 25/06/2003)

[OLD Provided also that where the goods are delivered for export through any Inland Container Depot specified in this condition, its export shall only be permitted through the sea-ports at Mumbai, Nhava Sheva, Kandla, Chennai or Kolkata.]

(Third proviso has been inserted vide Cus Ntf No.84/2003 Date 27/05/2003)

(v) The importer claiming exemption from duties against provisional credit permitted under paragraph 7.35 of ""Export and Import Policy"" by the Licensing authorities, executes a bond in such form and for such sum, with such surety or securities as may be prescribed by the Assistant Commissioner of customs or Deputy Commissioner of Customs, binding himself to pay on demand duty leviable on goods imported but for the exemption contained herein together with interest at the rate of 15% per annum from the date of clearance in the event of his failure to make exports and earn credits thereon to set off the provisional credits allowed;

(In condition (v) bold figure has been substituted vide Finance Bill 2003-2004 - Date of effect 07/04/1997)

(In condition (v) bold figure has been substituted vide Cus Ntf No.113/2002 Date 16/10/2002)

Provided that in the case of import against provisional credits, the exemption shall be permitted only for such goods which are in the nature of inputs required for use in the production of goods in the factory of the Duty Entitlement Pass Book holder or in the factory of supporting manufacturer as specified in the said Duty Entitlement Pass Book and such inputs are not transferred, loaned, sold, parted with or disposed of in any manner over after credits on exports to set off provisional credits have been earned.

(This proviso has been substituted vide cus Ntf.No.66/97 DATED 3-9-1997)

(vi) Where the importer does not claim exemption from the additional duty of customs leviable under section 3 of the customs Tariff Act, 1975 (51 of 1975), he shall be deemed not be have availed the exemption from the said duty for the purpose of calculation of the said additional duty of customs.

(Cond. (vi) has been substituted vide CUS NTF NO. 27/2005 DATE 02/03/2005)

(vii) Where benefit of exemption form duty is claimed by a person, who is not a Duty Entilement Pass Book(DEPB) holder, such benefit shall be permissible only against specific amount of credit, not being a Provisional credit, transferred by a Duty Entitlement Pass Book(DEPB) holder to such person.

TABLE

S.No.	Description of goods	Standard rate	Additional duty rate
(1)	(2)	(3)	(4)
1.	Goods other than edible oils	Nil	Nil

2. Edible oils 50% of applied 50% of applied rate of rate of duty additional duty"

(Above table & 2. has been inserted vide CUS NTF NO. 95/2004 DATE 15/09/2004)

Explanation : -

For the purposes of this notification ,-

(i) "Export and Import Policy" means the Export and Import Policy, April, 1997-March, 2002, published vide notification of the Government of India in the Ministry of Commerce No. 2/1997-2002, dated the 31st March, 1997;

(ii) "applied rate of duty" means the standard rate of duty specified in the First Schedule to the said Customs Tariff Act with respect to the goods specified in column (2) of the said Table, read with any other notification (for the time being in force) issued in respect of such goods under sub-section (1) of section 25 of the said Customs Act;

(iii) "applied rate of additional duty" means the additional duty leviable under section 3 of the said Customs Tariff with respect to the goods specified in column (2) of the said Table, read with any other notification (for the time being in force) issued in respect of such goods under sub-section (1) of section 25 of the said Customs Act.

(Above Explanation has been subsituted vide CUS NTF NO. 95/2004 DATE 15/09/2004)

[OLD-
Explanation : - For the purpose of this notification "Export and Import Policy" means the Export and Import Policy April, 1997 - March 2002 published vide notification of the Government of India in the Ministry or Commerce No. 1/1997-2002 dated the 31st March 1997. ]

(Please refer CUS CIR NO. 54/2003 DATE 25/06/2003)

(Please refer Cus Cir No.39/2002, Dt.02/07/2002)

(Pl. refer PN No.14/2002-07, Dt. 31/05/2002 for Exemption of SAD in case of unutilized DEPB for exports prior to 1.4.02)

(Please refer Trade Notice No. 05/2002, Dt. 29/05/2002 for DEPB Claims against exports made up to 31/03/2002)

(Please refer Cus Cir No.26/2002 Date 16/05/2002)

(Please see Cus Cir No.66/2001 Date 19/11/2001)

(Please see Cus Cir No.47/2001 Date 31/08/2001)

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